 So on my computer here, beautiful. Welcome to everybody here, 21st of March, 2024. I was going to say 1920, 2024. Welcome to spring. And if you're in the United States, welcome to March Madness, all sorts of fun basketball stuff going on. Today, we have Ashish Anand from Brew Finance who's going to talk with us about tokenizing commodity finance. Before that, I have a few things I just want to share to get us rocking rolling as per normal here. Since we're a hyperledger, supply chain, trade finance, special interest group, all are welcome. Please feel free to share thoughts and ideas. However, do not share things that are confidential in nature since this is an open forum for all just like an open source code here. So let's see here, upcoming events. We have a number. It looks like Alicia and I both were adding some things in there at the same time. So I got in a couple of weeks, we are going to have Meryl Ayyan. I'm going to butcher her last name, but I'm not even going to try. But Meryl is going to be talking about blockchain experiences for export transactions in Turkey. And she has some ideas. So Ann, thanks for arranging that and working together with Meryl on that. It's my pleasure. I'm sure that Meryl will share her detailed experiences with the special interest groups in the coming days. Thank you. Good, good. And then you see a number of others going forward here. I will mention in the announcements that there is a page. You can see it right up here. I'm not going to click on it. But we've moved our planning document for upcoming sessions onto the Wiki, so it's public. Previously, we had a Google Doc, or Google spreadsheet, Google Sheet, actually, that we use. Alicia, Jeff, and I are going to keep track of things. And now we've made it public. So everyone's able to see what we're planning, what we're thinking about, et cetera, et cetera. And you're all welcome, whether you're listening live or listening currently here in real time, to provide suggestions, ideas, et cetera, et cetera, associate with that. A couple other things here in announcements. I looked today, and Andrea, it's actually great you're on. Because I just looked, and we have 4,666 followers on the LinkedIn group that we have for this special interest group. Andrea was a huge person in getting that rocking and rolling. So thank you, Andrea. I didn't even know you're going to be here, Andrea. And I get to talk you out, man. So let's get started. I have a question. I will hesitate to make some. Don't worry. And by the way, let's talk for 5,000 guys as quickly as possible. There you go. I mean, slow and steady. So that says that people are interested in stuff that we're doing here. Also, there's a little group up here. Let me just say Alicia's added this, how to get involved. Because as always, we're looking for more folks to add to the chorus here of value that we can bring as a special interest group. And lastly, if you missed two weeks ago, Jeff, our fearless co-chair here, talked about digital twins in supply chain and trade finance a couple of weeks ago. It's up on YouTube. You can just search Jeff's name and our SIG. And you'll see that 148 people have viewed that since we had that session a couple of weeks ago. So slow and steady and good progress here and everything. So with that, Alicia, Jeff, anything else that we should talk about before we get rocking and rolling? I think you've hit on so many things. Thank you, Tom. OK, good. Oh, and I guess the point in that try to finance part was a very basic what I showed. So it's topical that we have this through finance. Good. And I'm in the top of it. And I should say one other thing about our project last year, we have the e-book representing here some case studies of where they've actually had numerical benefit associated with using blockchain and more specifically hyperledger, one of the hyperledger projects in supply chain and trade finance. This year we decided we're going to go a little smaller and pick off a few topics via blogs. So that's going to be the 18th of April topic. But there's already a page out there. You can find it from our master page here there. So with that, Ashish, we'll get you up here. I will stop sharing. And you can start sharing your charts while I say a few words here. Here, so today, again, we have Ashish Anand, the founder and CEO of Brew Finance. I was looking at their light paper. And he and his group are some OGs, original gangsters, in the sense of they've been at this a while. They had a nice little timeline. I think Anand was at 2017 or 2018 when you started on the journey here. And it kind of the winding road as it's been with some of this blockchain type stuff. So that was one thought. The other here is one of their ideas is democratizing financial services. And that's something that I like the word democratizing. I mean, sometimes it's a bad word, but as the old Winston Churchill quote said that democracy is one of the worst forms. It's the worst form of government, except for all the rest that have been tried. So with that, Anand, I'm going to turn it over to you and let you, or sorry, not Anand, Ashish. I'll let you rock and roll from here. And Ashish has said that he's open to questions along the way. So if you have something, you can either raise your hand or feel free to just start speaking. And Ashish will respond with that. So she's, it's all yours. Thanks, Tom. Thanks for this nice introduction. So it has been certainly some years of thought and journey which has been going on, which has brought us to group finance. And first of all, before I start, I would like to thank the ASSIG for inviting me over here to talk about what we are doing and especially a large thanks to Jeff, who has been like, we have been talking for almost more than one month and we have been planning about this day. So thanks a lot, Jeff, for getting me here. So as you rightly said, Tom, that the journey has been. So my journey in the post blockchain has started when you mentioned in 2017, though, when I first became familiar of something called Bitcoin and that was way back in 2015. And I was like, these quant guys are again, kidding us. So I'm from the finance side, you know. So I was like, in 2008, these guys created something. I mean, they created way back, but in 2008, we paid for this. And now they are coming to, from the equity market, they're coming to the currency market and really someone can create a currency with code. So that was like, so for three years, I was onto that side of the table and that, hey, we are kidding over here. But then in 2016, I woke up one day and I was, oh, these guys are trading actually, they are exchanging, they are paying in Bitcoin and paying in Ethereum for services. And I was like, then it is currency and so my interest came up. I came into the market, to the field since then, but we started building, so Group Finance has two entities. Group Finance is our DeFi entity and we've also worked in traditional finance. So we have an entity called World in India. So we started building World in 2019 and Group Finance is a culmination of that. So to talk about what we do, so as I have mentioned, we are building the operating system for tokenized commodities. So as we all know that tokenization, yesterday there was a big news and tokenization that BlackRock launched $100 million tokenized fund on Ethereum by the name of Biddle. So what are we seeing that actually speaking, so many of us here who built our world on hyper leisure and who built on supply chain. So we are the guys who have been talking about since 2014 and 2016 about bringing real world assets, connecting the real world supply chain on blockchain. But so far that was like there were waves. So sometimes the wave will pick up, sometimes it will replace. But now if we look at in last one year, so finally I would say that RWA wave has arrived. So we have of course, and the biggest RWA part though it is not a tokenization thing is thing is the ETF which we have seen because that is how we are connecting the real world to the tokenized world, how we are connecting the securities market to the crypto market. But other than that, if we look around the globe, 2019, sorry, 2023 was the year when tokenization arrived. So even in the crypto world, which typically has not been so great or who doesn't have great opinion about real world assets or real world activities. So crypto world also started realizing that, hey, there is something over there by which it's possible by bridging these two different parts of the world. We saw JP Morgan working on Polygon. Of course, yesterday BlackRock came on Ethereum. We have seen banks like Society General coming to crypto platforms like MakerDAO to tokenize or to securitize their loan books. So that is where I would say that we have really arrived in terms of asset tokenization, which has of course many more real world assets uses because once you have tokenized something then the entire value chain, whether it's a value chain related to financing, whether it's a value chain related to trade, international trade, export, import, each and every of them starts falling onto the blockchain. So the core basic wave is where we were missing so far. And that's what the market brought to us in last year or I would say starting from 2022. And we all know that the market size, there are many, many predictions on that. And in that, we have chosen one. So we have seen the likes of onto bringing, onto finance bringing tokenized people onto the market. We have seen many efforts by Hyperledger as one of them to bring supply chain onto blockchain using like food chain, food trucks, et cetera. And we have also seen that equity markets are coming on chain in many parts, especially in European world. However, one part other than the gold, so gold was one of the earliest one which came on tokenization and it's quite popular. And real estate has a certainly, every when we talk about tokenization, the first thought people talk about is, are we talking about real estate? But here, the vertical we have started to work is commodity sector. So I have my background in commodity markets and that's what perhaps prompted me to come over here. And what we are doing that, we are not only tokenizing the commodities here. We are essentially building the full stack commodity chain for which starts from tokenization and ends up covering each and every activity which you will see into the commodity markets happen. So whether that is financing, whether that is exchange of commodities, whether that is infrastructure because commodities are physical stuff and they are highly fungible as well plus they're volumous. So their storage, their trade requires monitoring throughout the value chain. So infrastructure creation, as well as taking the solution we started from India and currently our major part of work is in India. But we are taking it global. So we have already entered into partnerships in European markets, in Southeast Asian markets and in also entering partnership in African market because commodities are physical stuff so you need local partners to move the things over there. So that's the core idea and that's how we are building. And then when I talk about finance or lending, actually we are also working on both. So we are perhaps one of the few decentralized, perhaps few tokenization platforms across the globe where tried file lenders are lending against tokenized securities, so tokenized commodities. So we are actually working with tried file lenders in India and also we have an arm for decentralized finance. Means anybody and everybody across the globe can also become a financier on the platform. We also recently launched the first tokenized commodity exchange of India. So that's the pilot launch which we have done, commercial launch we will be doing in the coming quarter and that's how the things are growing up. Ashish, before you go on to the next chart here just a little fast, I just wanna, when you're talking commodities here and I think you said this, you're talking physical commodities like wheat and soybeans and sand and stuff like that, kind of bulk kind of stuff, right? You're not talking about money market commodities or something like that, whether a dollar is a commodity, like financial assets. Not really. I mean, we are only talking about physical commodities. So I'm not talking about derivatives at this moment. Okay, just wanna make sure. Yeah, there is a possibility to interlink these two over a period of time. We are not yet looking for that. Okay, good. Because when you trade, say for example, when you trade oil, so certainly there is a lot of intraday trading, there is a lot of futures trading that never gets settled, but the part of the derivatives also gets settled and where you will require physical markets to come in, where you will require say infrastructure to store those physical commodities and transport them. So that may also be built over time, but not at this moment. Okay, good. Thank you. And yes, right now our focus is agri-commodities. Though of course, there is always, we will be looking to expand it to other middle commodities as well over a period of time. Okay. So the core idea when we started building was two-fold. One is because commodities are physical in nature. And also commodity markets are, you will find a commodity market in a very small village of India or Africa or in South Asia. And you will have the Nibot and the Seabot of the world or CBOE of the world where commodities are traded in the dematerialized format as well. As a result, what happens is that because there are so many local to global markets, there are always specific markets which are not connected to each other. And that's a major problem which we have seen and actually speaking it is much more pronounced in commodity markets than any other market as compared to equity markets, for example. Equities are not that fragmented because most of the equities today, of course, other than some of you OTC trades, most of the equity has a global market which is electronic. Our crypto market is anyway 100% digital. There is no physical involvement into that. But physical commodity is because of the very nature that their production, their import and export, their trade from one party to another. All of that is subject to first, local geographic conditions, second, global trade markets and also third, the regulations. So this is one of the markets which are highly fragmented. And as a result, you will always have pockets of supply and pockets of demand which are not matching. So one idea behind creating the tokenization was, can we create digital commodity markets which can plug this gap between separate markets which are fragmented? And the second part was, which is very specific to commodity markets is something called commodity finance. So commodity finance, so commodities are a very unique market in the sense that especially let's talk about agri commodities, though it is applicable to most of the commodities, but what happens that the production means the supply and the demand are not exactly matched. So for example, if we talk about agri, soybean for example, the production of soybean will happen only once in a year. You take any country, that's the scenario. But the consumption will happen uniform throughout the year. So you are not going to eat more soybean because more soybean was produced in a particular month. Or you are not going to eat more bread because wheat is produced in that particular month. You are going to eat the same number of breads throughout the year. So what it means that, because the production will happen only once in a year. So it all means that the people in supply chain of commodities are going to hold the inventory. So whether it's a farmer, whether it's a trader, whether it's a grain elevator, a warehouse, a processing mill that is converting your raw materials, say for example, wheat to bread, all of them are going to hold this harvest, sold the supply, hold this inventory in hand. And that requires a specific type of financing, which is commodity finance. It is known as commodity finance or it is also known as in India, we call it warehouse receipt finance because you have deposited the inventory in the warehouse and borrowing money against that and so on. And this market, if you look at, and if you pick up last 10 years, maybe I mean, there is a longer history, but if you just pick up last decade, you will find that every year there is a multi-million and when I say multi-million, I'm not talking about one million or two million, I'm talking about hundreds of millions. So hundreds of millions of dollars are being lost by the lenders, especially the banking lenders into this sector. So some of the instances starting from India, especially if these are Asia-focused, but we have the same problem we have seen in American continent, we have seen it to certain extending European continent as well, that banks especially the lenders have lost hundreds of millions of dollars, but even billions of dollars in certain instances. So when we were building, when we started building our commodity tokenization stack, actually one focus was to solve the fragmented market. The larger focus was to solve the risk of the commodity finance market. So how do we solve for this risk which arise over here and that's where the blockchain came into picture. That can we use blockchain to give lenders comfort, that when you are lending against a commodity, nobody else is lending against that. So that is what happened in, say for example, it actually happened in all of these, or when you are lending against commodity receipts because you are as a lender, you can't actually, you don't have control on the warehouses or the go downs where the commodities are stored. So we are relying upon the certificate issued by the warehouse keeper, the grain elevator, that I have the commodity. So is that receipts genuine, not duplicated, that happened in excess world fraud, excess world is a blame course of Sweden, one of the largest commodity traders of the world. So one single instance and they, the banks lost around $300 million just because they lent against certain receipts which were not genuine, which were not issued by grain power. Or can we give assurance to the lenders that if I have given loan to, if lender A has given loan against a commodity, it is not with lender B, placed with lender B as well. And that's what happened in Chindow in China. And interestingly, this was a London Metal Exchange Collateral. So you see, this was a collateral which was essentially copper in Chindow, stored at Chindow Port where the commodity was to be meant for trading on the LME exchange, but it was also being financed by certain banks and they lost huge money. Or like our NSEL scam that happened in India, where lenders, and these were private lenders, one exception is while the three ones are banks, NSEL scam was a private lender scam, wherein the commodity was supposed to be a billion dollar at that point of time. Essentially, the total commodity stored in the warehouses was not more than 100 million dollars. While the lending was a billion dollar against that. So that is where we decided to use blockchain to solve for these issues. And that's how both the issues were tickled and then we started building on top of that. Because the NSEL was about private investors, so that is where DeFi comes in. And because these are about bank losses, so that is where DeFi comes in. So just we will go to how we do that. Actually, I should have talked about this. I will talk about this later. So how it works today. So we have a very novel way of tokenization and we call it custodian-based tokenization. But one way of tokenization which we have seen is that there is a physical asset and a digital equivalent of that, which is also known as a digital twin is created. But what we have done over here, what one thing we have brought over there, that in this particular case, the physical commodity is stored with hard parties. So if we are creating a digital twin, we are making sure that the physical commodity is not in circulation. So you can't have an instance of two type of assets, one digital asset and one physical asset being in the market at the same time. So for that purpose, we use custodians, which are essentially warehouses, or as we call them in USA, grain elevators. So those are the entities which are keeping the commodities of the supply chain. Say for example, with the commodities of the farmers or the traders of the mills in bonded warehouses, in bonded grain elevators, at which point they are also verified through a combination of machine, as well as machine learning solutions and human eye, all three put together. So there is a verification about how much the commodity in the warehouse, what is the quality of that produce? And also when was the quality validation done, whether it is insured or not? And along with that, what we do that, we take the commodity data from different sources, can be physical market, can be derivatives market as well. And all this data about the owner's details. So all of this is by the way KYC. So nothing happens on our platform, which is not KYC. So the commodity owners, who are they? What is the commodity they own? What is their nature? What is the weightage? What is the quality, et cetera? Along with the price data, all of that metadata goes to create a non-fungible token. So this token represents the commodity owners. And now it can be because it's a token. So it can be transferred or it can be used as a collateral. So when it is used as a collateral, it can be used as a collateral by the lenders. And those lenders can be either banks, we are working with them, or they can be our DeFi liquidity providers. So what we are doing that, we are using the collateral to borrow either from the trade fine market or the DeFi markets. And that's how the chain has been designed. So I will just go into the technicals of this. Hishish, can you go back one chart? Or back there? I just wanna make sure I understand the KYC that you're doing in order to avoid the garbage in garbage out problem. You're assuming at the grain elevator, that person or business or whatever that owns that grain elevator, they're gonna have to verify the physical presence and amount of whatever grain it is, for instance. No, that is done by third parties. Okay, so there's gonna be some third party that's going to be doing that. And are those parties that already exist in the marketplace or those tonight? Since I'm not familiar with it. No, they do exist. I mean, they have been there for like, since the time that commodity markets are there. So they have collateral managers in one word. And also what we have done that, actually speaking, we are spending that part more and more. So here we have also built certain machine learning solutions to ensure that the data is not only coming from human eye, but they are supporting evidences that hit this data. For example, when the vehicles arrive into the grain elevator, we take a geotagged photograph of the vehicle. We take geotagged photograph of the commodity. We geotagged the photograph of the commodity stack that has been created. There is a timeline which is analyzed that how much time it took for this entire process, whether it should have taken that much time or not. Also, most of these grain elevators are equipped with what we call wave bridges. So you don't get the quantity data, you get it from a machine. So that data has been taken. In the future, actually speaking, we are working on creating a deep-in infrastructure which will be out in next six months, six to nine months, which is the decentralized physical infrastructure nowadays very much popular subject in our digital assets market. So we will be strengthening that further using combination of IoT devices, using combination of smart computer vision solutions. Thank you. Is she sure going into this? And thank you Tom for bringing this up because I had questions about the audit oracle as well. Often there is a lot of IoT devices that are used for this. You mentioned before quality verification. Right now, what are you doing to verify quality? Sure. So one thing is that markets are a bit different in the developed markets like USA and in India. So in USA, you have grain elevators where the commodities are stored in a silo, big silo, and you can put a lot of IoT devices to monitor the quality, temperature, humidity level, et cetera. In India and in many other emerging markets like Africa, et cetera, the storage is not in silo, it's in bags. So you have 50 kg bag stacked on top of each other and put into a room or just like a ventilated room that's all. So in those markets, it's very difficult to, it's not cost effective to deploy many IoT solutions as it is cost effective to do in silos. So in those markets where we are currently working, we have to depend upon two things. One is a human eye and a human verification. Also, there are certain machines which are used for the purpose of quality verification, but their use is very limited. For example, moisture meter you will find in each and every warehouse. But grain analyzer using a camera, you will not find in many warehouses, but there are solutions which are coming up in that area that you take a sample, you put that onto a scanner and it will give you the details of the quality details of the commodity. So as I mentioned that those are things which are coming up, but not yet there. So we are looking to build over a period of time, more strong infrastructure in that area. Okay, great. Thank you. But if we go to silo market, the things will be entirely different, much more controlled. That makes sense. Jeff, just one quick question. I was just curious on this. I always wondered about the commodity NFT that's created is based on the price, quality, et cetera. And so the banks then loan against that NFT, that value. If the underlying commodity collapses and the value then theoretically the NFT drops substantially, what do the banks do? Do they have that built into like a smart contract or something? What do they do? Is that just a risk that they take and then that's it? Yeah, so there are certain safeguards to against that. First of all, the lending is never 100% of the value of commodity. It is typically in the range of six to 17%. So these are over collateralized loans. So if the commodity prices are within that range, the bank is just still positive. The second part is that whenever there is a price fluctuation, so we have a M2M process, mark to market process. So if there is a price drop of more than 5% in the commodity value, we will get the borrower to deposit more commodity means provide more collateral or to pay part of the loan. In case it drops or it reaches near to our threshold and the borrower has not given us extra collateral or has not sold part of the loan, has not repaid part of the loan, we will have to liquidate the commodities. So there are smart contracts to sell that and we have an exchange where these commodities can be sold. And when these commodities can be sold, there will be buyers who will buy that commodity and the bank will be repaid its loan along with interest. So that is how they are surviving. Yeah. Is there any requirement that the commodity be insured while it is insured in case there is not only a drop in commodity price, but say in case of flood or other extreme weather? So 100%, I mean, without insurance, no lender will land. So on our platform, anything that comes up is 100% insured. So against the both, like theft, if there is a possibility of theft or filth raise, all of that risk, environmental risk, all of that is covered. But it doesn't cover price fluctuation. I mean, in case there is a price fluctuation that is not covered. Though some banks adopt a practice of hedging the exposure. So if they have a lot of physical commodity and they know that, so sometimes they will raise the physical side on an exchange so that their risk of price dropping down is covered. Okay. Makes sense. Thank you. Sure. Any other questions out there where we let Ashish continue? Okay, Ashish. So we go to the next slide and which is the tick part of it, how the tick part works. So our tick is a unique combination of a permissioned and permissionless blockchain. So when we first built, we built the first part which is the permissioned part. And that's when most of my tick team wanted to build on Hyperledger and I went against that and we did not go for Hyperledger. So we built it on Corum. The reason being was that we had this vision in 2019 that private and permissionless blockchain will merge. So that is what Bezu has brought now. But at that time, that facility like bridging Ethereum with Hyperledger was not possible. And also tokens, especially creating non-fungible tokens was a bit difficult. So we built it on Corum. And that is how the first private chain was built and everything in the trade-fied world when we are dealing with the banks, everything happens on a private network. There is no interaction with the public blockchain. So how that works, very simple. The borrowers means which can be a farmer. So we also serve very small farmers and we also serve large corporates as well. Because in the entire agree supply chain, this commodity finance product is available. And secondly, in the warehouses because our objective is to tokenize whatever comes to warehouse, you can't distinguish which stock belongs to whom and you don't want to leave that stock because that is where your fraud risk events start if you start leaving certain stock. So any type of borrower, they have a mobile app. They also have a, they use a mobile app or they can also use a computer. And in the warehouse, in the grain elevators they have computers. So they can say, for example, a farmer doesn't have a mobile phone, they can come to the grain elevator and will get access to a laptop or a desktop in assisted fashion, they can do the work. Then we have asset custodians, which are our warehouses. We have asset verifier, which we discuss both man and machine data. And we have lenders. So they get connected over a private blockchain. The commodity gets tokenized on this blockchain. They're used as collateral by the banks to lend on this blockchain. And that is where the permission blockchain takes care of each and every one. So when we were developing DeFi, the idea was that how do we connect these two? And that's when we created one of the first bridges between permission and permissionless blockchain in 2022, between polygon network, polygon is the network we operate on and our private blockchain. So what happens that these tokenized commodities, which have been tokenized on the private blockchain, if there is a lender against that on the public blockchain, the collateral will be breached and it will be burnt on one side and created on the other side to the public blockchain. And on the public blockchain, anybody from across the globe can become a liquidity provider. So they can be a lender. The benefit is that they can become a lender and when they lend, they can earn both economic yield, which comes by lending, but they can also earn a blue token yield. We are launching our blue token some point in time in this year. And so these liquidity providers, the lenders can also earn yield. So that way it is bringing the benefits of the DeFi while bringing the benefit of the real world lending to the DeFi players as well. So this is how the technology piece is structured. And if there is any question on that, I will answer that right now before I move into the non-technology part of the business again. I'm gonna have your L2 on your chain, you're on the right. Is that the one that uses the bridge and not the consensus layer? Yeah, certainly L2 uses the bridge and not the consensus. The Ethereum is the consensus layer. So when you use an L2, that is where the transaction has to flow. So because Ethereum gas fee can be very high for small, especially the farmer segment. So that is where we use a polygon L2. And then polygon will send all of this data to the Ethereum layer for settlement of the transactions. So this is how the... I just something that's just out of curiosity. What's the ERC token you're using now on Ethereum? Is it 1155, ERC? 1155, yes. Okay. So essentially that makes it a semi-fungible token instead of a pure non-fungible token. So we are not using 721. So I will just... So this was the technical part. And I will come back to... So as I mentioned to you that we use two entities, World and Brew. So I will just come back to the same thing. And I would just like to bring this slide that how do we use blockchain for the risk management purpose? So we talked about the risk events earlier that we have seen that there are force receipts. There are multiple landings. There are no control on how the warehouses are, how the warehouses are landing, how much landing is taking place, et cetera. So what we did that, we brought this... That is where the blockchain came as a solution. And that's become interesting from a supply chain finance perspective. That using blockchain's properties and this doesn't need to be told to this group. But if someone is... I mean, because we are also live on LinkedIn, et cetera. So what we do that we use the functionalities like immutability to make sure that the NFTs or the semi-fungible token that we are using, they cannot be duplicated. It means there can never be a duplicate receipt. Duplicate collateral or a forced collateral as well. Second part is that because the lending process is controlled by the smart contract, in our system, there is not a single physical interaction. So it's starting from KYC to loans disbursement, recovery of loan, collections, as well as liquidation of the collateral in case of a default. By the way, in the last three years, we have zero default, zero liquidation so far. But in case it happens, all of that will happen through the system and will be controlled by the smart contract. So when it is controlled by the smart contract, it means the biggest frauds which we have seen, which is the multiple lending, those are taken care of. So we just have... So whether you are talking about Chinda or you are talking about Singapore bankruptcies of commodity traders like in long, et cetera, all of that gets stopped because everything is controlled using tokens and everything is controlled using smart contracts. Third part is our source-based custodian based approach. Because what we saw that the major risk events happened because banks had no idea what was going on in the warehouses or what was going on in the elevators because the volume is so high, it is difficult to segregate. So that is why we decided to have the control at the source itself. And that single source of truth helps us to ensure that you can never have this type of incident that you have given loan of a billion dollar and your collateral value is less than a billion dollar. So these are the major systematic risk. They don't hit every day, but when they hit, they hit like big ones. So that is where blockchain comes and showcases its strength and able to ensure that our systematic risk are taken care of. But at the same time, we also have smaller incidents of physical risk events. So for example, someone takes the goods away of the goods taken out of the warehouse as simple as that. Or for example, a borrower comes to us and says that I have this much of goods into the grain elevator and the grain elevator certifies that. But what if the goods never came to the grain elevator? So to stop that, we also need the physical security and that is where we are using as I mentioned that we are using certain machine learning solutions and we are looking to strengthen that with a deep in infrastructure over a period of time. And then when we did all this, certainly we were able to reduce the risk, but we were also able to reduce the cost for the cost of operations for the warehouses, cost of operation for the lenders. Also we were able to reduce the underwriting costs for the lenders because they have a lot of data available which was not available earlier. So that way it's a solution which helps them to go to new markets or go to markets which were earlier costly to serve and so on. So that has been the core objective of using blockchain into the purpose and that way we are helping the lenders, also helping the borrowers because earlier the lending process used to be like lengthy, maybe for months and months or at least weeks. Now it is more or less real time. So especially in the small ticket size loans where inventory is the core and you don't have to look at the balance sheet and all, we are able to do real time loans. When it comes to financial data along with the inventory data and all, then perhaps it will take us some time but much lesser than what was happening earlier. And so that is how we structured it and that is how we are going ahead with this. As of today, we are globally, certainly in the commodity space, we are the largest tokenization platform. Already we have tokenized more than 700 million dollars. By this year end, we expect a billion dollar of commodities to be tokenized onto the platform. Now we are working with some of the lenders in our Treadfy entity. And that's also one of the few instances across the globe where Treadfy lenders are using tokenized assets as collateral. And we have secured some credit line in that, almost 10, around 15% of the credit line is used and will be used over a period of time. Right now we have a two million metric ton of storage capacity on our platform. By end of the coming quarter, after June quarter, we are getting one of the largest players into this space to come onto the platform. And our storage capacity will go to 10 million metric ton. So that's where we are doing and that's ultimately I would like to come back here that this is the way we are looking to take the entire commodity sector on a single tokenization platform. I mean, not single, but on the tokenization stack on the projects. So with that, I would stop. And if there are any questions remaining, I will better answer that now. Or we can have further discussion on everything around tokenization or commodities. Tom, you are muted. There we go. Thank you Ashish for sharing your whirlwind tour of roof finance and what you're doing with tokenized commodity stuff. That's great. Are there any questions out there from folks? I have one question. I guess, how do you make money in this here? Just so I mean, I understand you're gonna be introducing a token, et cetera. I assume there's some charges along the way that just kind of come in play so that who's paying who along the way here? And then I'll come back for any other questions. So Tia, if you have questions here, if there are no other questions, then we'll close. No, we are a Buddhist startup, by the way. And we don't have token yet into the market. So we need to generate revenue. And so we don't have that luxury of not generating revenue and being in the market. So first of all, we receive some money, not much for implementing the tokenization, which is like a digital solution for the warehouses. It helps them reduce their workload. It helps them digitize their workload, et cetera. So we receive some small money from them. But our major source of revenue is from the lending. So when there is a lending from the banks or from the liquidity providers to the borrowers, there is a spread which Brutex for the efforts of helping them to reach to new markets and also reducing their cost of underlighting. So that's where we make money. And we are looking to also go as we have launched our pilot of our exchange. So we expect that over a period of time this will generate, this will be a driver of revenue. Second only to lending. So that's the core, of course, where the revenue comes in. In the deep in infrastructure, there can be some money which can be made, but not in the near future. So these are the three. Good, good. It always helps to understand where the money's going and what people's motivations are in addition to the high-level advocacy that they don't want fraud, right? And then it's a question of, what are people willing to spend? Okay, good. Thanks, Ashish. What else is out there from folks? Yeah, I just had another question, kind of along that line. So the Ethereum gas fees that you're seeing on your L2 level, how is that paid for then again? Is that just part of your monthly or quarterly operating expenses that are covered through these other data that you're getting or is there some other mechanism where you're able to charge for transaction on that gas fee to whomever? How does that piece work? So essentially speaking on polygon, the fee says like, I mean, it's so negligible that nobody cares. We don't care or the liquidity providers don't care. So I mean, it's less than a cent most of the time. So typically liquidity providers pay the fee for when they are providing liquidity onto the platform into the, and the borrowers don't pay any fee that is absorbed by us. Okay, so the NFT metadata then it's kept off-chain then to keep those costs there? Oh, okay. That cost is borne by us. So when you are minting the NFTs, that cost is borne by us. So that's a part of, as you rightly said, that's a part of our operational cost. And yes, that cost has gone up now because matic prices have gone up and earlier the fee used to be a bit lesser, but it's still, I mean, we don't mind paying that much. So if I do say mint 1000 NFTs, my cost will be something like $50 today. So not much should bother on that. Good. Anybody else with any questions? Going once. Sorry, hi, just from my side, I have just one simple question. I would like to learn a few more details regarding the role of the banks in your business use cases. What would you say more? Sure. So see the core use of the bank is that to lend money. That's where we are using banks for. So there is a, because these people... Banks for the fiat currency, banks for the... Yes, so that's true. We, this is one part which remains outside of the blockchain, the financial transactions from the bank. It is done in fiat currency, though we have recently gone to our central bank, Leisure Bank of India, and have asked them to plug in their CBDC on our platform. It's a discussion that is ongoing. Let us see if they agree to that. But otherwise, right now it's a fiat transaction. And that is one... So for that, what we do, that actually comes as a oracle. So we connect our blockchain to the core banking solutions of the bank. So whenever bank do a physical fiat transaction, that data gets recorded onto the blockchain, which is about giving the loan or about receiving the repayment and interest. But yes, you are pretty much right. That is a oracle for the platform and not a direct money transfer onto the platform. If CBDC, we are able to connect, we will be able to do that. But the DeFi transactions, they are 100% through the stable points. Okay, so I agree with you. Thank you. I appreciate if you could me at wise if any of your demo included in the banks in the coming days. Sure, Rehan. Why not we can do the demo of the platform? Okay, not just for me, but in a general demo, I mean. We can do that as well. If the SIG wants, we can resassemble and we can bring the demo part to that next time. All right, thank you so much. Thanks. Okay. Great. Well, we're at the top of the hour here. So we'll wrap up Ashish again. Thank you very much for sharing the good stuff. It's always good to see somebody who sticks with it and is starting to see some success here in the blockchain. And maybe this will be a solution in our next version of our e-book here. So with that, thanks everybody for joining folks who have stuck with us watching the replay on YouTube. Thanks for sticking with us. Two weeks from now, we'll be talking about export and finance with Merrill from what is it? It's T3I, is that right? Ion T3I, partner network? Yeah. Okay, we're remembering it here. So on April 4th, same time, same channel. Enjoy the rest of the day, everybody. And we'll go to Senator Chase. Thank you. Thanks so much. Thanks, Ashish. Okay, bye-bye, bye-bye, bye-bye. Bye, everybody. Thanks, Ashish. Bye-bye, Andrea. I'm here. I'm here. Yes, I know you're dead. I got a call from my kid. Sorry, he's alone outside. Hey, since I got you, I just make one question. I got it in the guy. You mentioned that he's not in hyperledger. No, those little experiences you see as a father. You guys all have one second here. Yeah, remember them.